You are offered $1,200 today, $10,000 in 13 years, or $32,000 in 25 years. Assuming that you can earn 16 percent on your money, which offer should you choose?

a. What is the present value of $32,000 in 25 years discounted at 16 percent interest rate?

$_____. (Round to the nearest cent.)

b. What is the present value of $10,000 in 13 years discounted at 16 percent interest rate?

$_____. (Round to the nearest cent.)

c. Which offer should you choose?

A. Choose $1,200 today because its present value is the highest.

or

B. Choose $10,000 in 13 years because its present value is the highest.

or

C.Choose $32,000 in 25 years because its present value is the highest.